Hollinger CEO testifies Black deceived board

Conrad Black deceived the board of Hollinger International, both about his intentions regarding the sale of the company's assets and about payments that he and his associates received, the company's interim chief executive testified on Wednesday.

The testimony from the chief executive, Gordon Paris, came during the opening day of a trial intended to resolve whether Mr Black can proceed with an agreement to sell his controlling interest in Hollinger International, which owns London's Daily Telegraph, The Jerusalem Post and the Chicago Sun-Times, among other newspapers.

Independent directors have been running Hollinger International since November, when they disclosed that Mr Black and several senior executives had accepted millions of dollars in unauthorised or undisclosed payments. They contend that Mr Black's sale agreement, with the Barclay brothers of Britain, violates a separate agreement he signed with Hollinger International last November.

In filing suit here, Hollinger International is asking the court to permit it to continue the process of finding a buyer or buyers unimpeded by Mr Black. In a countersuit, Mr Black asks the court to permit his transaction with the Barclays to go through.

Mr Paris said he could find no evidence that the board had approved the payments to Mr Black and his associates, which were ostensibly related to non-compete agreements reached with buyers of newspapers and other assets sold by Hollinger International.